5 PROPOSED ADMINISTRATIVE RULES

 

 

DE PARTMEN T OF TREASUR Y BURE AU OF STATE LOTT ERY LOTT ERY

Filed with th e Secretar y of Stat e on                        .

These ru les tak e effect 7 days after filing with th e Secretar y of Stat e.

 

(By auth ority conferr ed on th e comm issioner of stat e lott ery by section 11of 1972  PA 239 , MCL 432 .11)

 

R 432 .5, R 432 .6, R 432 .13, R 432 .17, an d R 432 .37 of th e Michigan Administrat ive Code ar e am ended as follows:

 

P A R T 1.  G ENER AL P R OVI S IO NS

 

R 432 .5     Lic ense  fee .

Rule 5. (1) The comm issioner sha ll determ ine th e fee for a license as an agent. The fee is payable  at  th e  time  of  license iss uan ce. T h e fee i s i nt e n ded t o cove r th e cos t of lice n s i n g.

(2)     A license renewal fee ma y be char ged annua lly  in  an  amount  determ ined  by  th e comm issioner. T h e fee i s i nt e n ded t o cove r th e cos t of th e lice n s i n g r e n ew a l ope rat io n.

(3)     THE SE FEE S IN SUBRUL ES (2) AND (3) OF THIS RULE SHALL NOT  EXCEE D THE ACTUAL COST TO THE BUREAU.

 

R 432 .6     Conditions   of li censing .

Rule 6. Upon iss uan ce of a license, th e agent  agrees  that  he or she sha ll do all of th e following:

(a)(1) Be boun d by an d com ply with th e act, th ese ru les, or instru ctions an d directives of th e comm issioner or bur eau.

(b)(2) Make tickets available for sale to th e public  dur ing  norma l business hour s.

(c )(3) Refra in from purcha sing an y winn ing ticket from its origina l purcha ser or from subseq uent purcha sers.

(d)(4) Mainta in auth orized displays, notions, drop boxes, an d oth er mat erial  used  in conjun ction with sales in  accor dance with instru ctions iss ued by th e bur eau.

(e)(5) Act in a fiduciar y capacity with respe ct to all tickets accep ted from th e bur eau or its auth orized distr ibutors unt il payment ha s bee n ma de.

(f)(6) Mainta in curr ent an d accurat e recor ds of all operat ions in conjun ction with sales in conform ity with  ru les,  instru ctions, an d directives of th e bur eau.   The agent  sha ll mak e th e recor ds available  to  rep rese ntat ives  of  th e  bur eau  upon  reques t  for  inspection  an d au dit.

 

 

(g)(7) En sur e  that  a  person  un der  18  year s  of age  does  not  sell  t ickets  or  pay  winn ing t ickets.

(h)  En sur e that  t ickets will not be sold at  an y price great er than    th e price stat ed on th e t icket.

(i)  Hold th e bur eau an d th e stat e harm less from an y liability ar ising in conn ection with sales.

(j)    REMIT FUN DS DUE FOR LOTT ERY SALES AND OTHE R AMOUN TS OWING TO THE BUREAU AT THE  TIM E AND IN THE MANNE R SPE CIFIED BY THE BUREAU.

 

R 432 .13   Sa le ;  inspec tio n; commission  ; bo nus  prog rams ;  deposito ri es ; tick e ts he ld   in   trus t   for    the    bene fit    of   the    bu reau ;   disqua lifi cation    of    agent rep resen tativ e ; di rec t tick e t dist rib u tio n to agents .

Rule 13. (1) An  agent  sha ll sell t ickets only on  th e premises  at  th e   specific locat ion nam ed in th e license or atta chm ent s to th e license.

(2)   An agent sha ll a llow inspe ct ions of his or her premises at an y t ime upon th e reasona ble request of auth orized inspe ctors of th e bur eau . A bur eau inspe ctor ma y mak e an inspe ct ion with out prior notice to th e agent .

(3)  An agent is ent it led to a comm ission for t ickets sold by him or her in an am ount to be determ ined by th e comm issioner. The comm issioner sha ll ann oun ce  chan ges  in  th e comm ission am ount not less than 60 days befor e th e effect ive dat e an d sha ll include th e chan ges in a d ir e ct ive WRITT EN COMM UNI CATIO N issued to all agent s.

(4) The comm issioner sha ll p r omu lgat e PROVIDE deta ils of an y bonu s  program for agent s in d ir ect ive s , w h ich s ha ll be d is tr ib ut ed  A WRITTEN COMM UNI CATIO N ISSU ED to a ll agent s.

(5)   An agent sha ll dep osit, in a mann er spe cified by th e comm issioner for colle ct ion by th e stat e, all moneys received by th e agent from th e sale of t ickets, less th e am ount reta ined as com pensat ion.   The agent  sha ll file with  th e bur eau , or  it s des ignat ed  agent s, report s of t icket sale receipts an d tran sactions. The bur eau sha ll specify th e form of th e report s an d th e in format ion required. In prepar ing a report , an agent  sha ll  refer  to directives  an d instru ct ions to auth orized agent s ma de available by th e bur eau .

(6)    Unt il such t ime as payment ha s been received by th e bur eau , all lott ery t ickets ma de available to an agent an d an y net t icket pr oceeds sha ll be deemed to be held in tru st for th e benefit of th e bur eau .

(7)    The bur eau ma y disqua lify an y person auth orized by th e licensed agent as th e agent 's represe ntat ive.

(8)   The bur eau ma y distr ibut e t ickets directly to agent s if, in th e comm issioner's opinion, it is necess ar y to ma inta in cont inu ed sales activity.

 

R 432 .17     Ow ne rship  of lotte ry tick e ts .

Rule 17. (1) The owner of a valid lott ery t icket that ha s been sold by a licensed agent is presum ed to be owned by th e person or ent ity whose nam e is ent ered on th e claim form , notwith stan ding that th e nam e of an oth er person or ent ity ma y appe ar on th e t icket face or reverse side. Except as provided in subru le (2) of th is ru le, th e bur eau sha ll pay a prize to th e person whose nam e is ent ered on th e claim form  or prese nt  th e prize to a th ird part y

 

 

who is auth orized, in writing, as th e claimant 's represe ntat ive. All liability of th e bur eau , th e stat e, th eir employees an d agent s term inat es upon payment .

(2)   Upon receipt of in format ion support ed by proper evide nce that an oth er person is ent it led to payment , or  upon  asse rt ion  that  th e  t icket  was  not  legally  issued  initially,  th e comm issioner ma y withh old payment pending an investigat ion.

If th e ownership of a winn ing lott ery t icket is disput ed an d th e results of th e comm issioner's investigat ion ar e in con clusive, th en th e comm issioner ma y initiat e an appropriat e judicial pr oceedi ng to determ ine ownership.

(3)   The claimant of a lott ery prize ma y not assign or sell his or her right to an y prize except as provided for by law. The comm issioner sha ll develop policies, pr oced ur es, an d fee schedules for th e disposition of a claimant 's right s to futur e payment s.

(4)   T h e h olde r of a winn in g t ick e t s ha ll cla im th e p r ize with in 1 ye ar fr om th e d ra win g d at e in w h ich th e num be r is e nt e r ed or fr om th e ann oun ced e n d of s a le s for an in s tant gam e . THE PRIZE FOR A WINNING TICK ET MUS T BE CLAIMED BY THE EXPIRATIO N DATE PRINTED, OR AS DEF IN ED, ON THE TICK ET.

 

P AR T 2 . O N -LI NE T ER MI N AL S

 

R 432 .37     Fees .

Rule 37 (1) The comm issioner sha ll esta blish fees for all of th e followin g: (a) The pr ocessi ng of applicat ions.

(b) Commun icat ions system insta llat ion or relocat ion. (c) Fa ilur e t o m ee t s a le s pe r forman ce r eq u ir e m e nt s .

(d)) (c) Fa ilur e of an  agent  to promptly sett le for  an y gam e as required  by bur eau  ru les, contra cts, directives, or writt en commun icat ions.

(e)   (d) Ina ctive license statu s.

(2) T h e comm iss ion e r s ha ll es ta blis h fees b a sed u p on th e followin g p r ovis ion s :

(a) ) T h e  am ount  of th e  a pp licat ion  fee  s ha ll be  b a sed  u p on  th e  a ctua l   b ur e au  cos t s  of lice n s in g.

(b) ) T h e am ount of th e commun icat ion s s ys t e m in s ta llat ion or r elocat ion  fee s ha ll  be b a sed  u p on th e a ve ra ge cos t t o th e b ur e au for a ll in s ta llat ion s for  th e p r eviou s fis ca l ye ar .

(c)T h e am ount of th e fee for fa ilur e of an a ge nt t o p r om p t ly se tt le for a gam e s ha ll be b a sed u p on a ctua l cos t s t o th e b ur e au , excep t that th e fee s ha ll n ot be le ss than $50 .00 .

(2)      THE FEE S IN SUBRUL E (1) OF THIS RULE SHALL NOT EXCEE D THE ACTUAL COST TO THE BUREAU FOR THE ACTIO N.

(3)    Agent s whose avera ge weekly gam e sales fall below th e minimum sales per forman ce requirement s esta blished un der R 432 .36 ma y be assessed a weekly low sales per forman ce fee. The comm issioner sha ll determ ine th e am ount of th e fee assessed for failur e to meet minimum sales per forman ce requirement s un der R 432 .36.

(e ) T h e am ount  of th e fee for an ina ct ive lice n se fee s ha ll be b a sed on a ctua l cos t s t o th e b ur e au .